The 4 4 Shop is a large retailer of equipment for pickup trucks. An income statement for the company's Bed Liner Department for the most recent quarter is presented below: The 4 4 Shop Income Statement - Liner Department for First Quarter of Current Year

Sales		$700,000
Less: Cost of goods sold		250,000
Gross margin		$450,000
Less: Operating expenses:
Selling expenses	$200,020
Administrative expenses	190,000	390,020
Net income		$59,980

The liners sell, on average, for $350 each. The department's variable selling expenses are $35 per liner sold. The remaining selling expenses are fixed. The administrative expenses are 25% variable and 75% fixed. The company purchases its liners from a supplier at a cost of $125 per liner. Required: Prepare an income statement for the quarter, using the contribution approach.